All Forum Posts by: Scott Hollister

@Mark Leclair next Tuesday in Manchester: https://www.biggerpockets.com/forums/521/topics/714933-central-ct-meetup-buy-and-hold-investing

Investor financing doesn’t have to be hard! Come hear industry veteran Steve Gilbert reveal the truth about alternative financing options for “Buy & Hold” investors that lowers the bar on documentation, time to close, and the amount needed for reserves without the profit-strangling rates that hard-money often imposes.

Bonus: Come say “Bon Voyage” to our meetup co-founder and friend, Jacob Reilly, as he takes the next year off to travel the globe with his soulmate and partner, Hillary. We’ll all miss his creative and inspiring energy!

@Tyler L. I think you answered your own question with your response. I think there are conversations for and against New England, just like there are for the majority of the southern states.  

I just went two of our largest yearly real estate outlook conferences in Connecticut, I am also on the board for commercial real estate here and this "outlook" talk is always a heated debate. One conference was with the Uconn Real Estate program, often top 10 in the US. To summarize, we are losing 100k jobs and replacing them with 30-50k jobs, which effects the economic effect of the 100k job, hurting the creation of more employment.

The second conference was with Dr. Yun, chief economist for the national association of realtors. Nationally we are coming up on our histories longest economic expansion ever. Whats unique about this one, and what might impact the inverted yield curve to signify a recession, is that we are in a very low interest rate environment. Here are some highlights from his slide,

Consequences and Solutions: 

From what you said, purchasing value add properties, on the smaller scale, you will be fine. When you talk about purchasing large multifamily or commercial buildings, depending on the area, that is when you really need to dial in on the local economics, politics, and outlook. It is still great to know these things, but not necessary to write a dissertation on it before investing and taking action. The important thing to follow is quality job growth in a diverse economy. Boston is a great city! 

@Anthony Thompson did a wonderful job explaining as well! 

@Daniel Lynch Yes. 

I moved in with my girlfriend after I had bought my first house hack. I owned it for years, charged half of low market rent, and half of heating and electricity. Fast forward a year after that, we were engaged and I got stuck in a BRRRR where I didn't have the DTI ratio to refi out. So my now wife was given 1/2 a house, so tell her to stick in there:)

Financially, I think it's important as a couple that you talk about it and come up with a mutual solution together. Maybe you take that rent and stock pile it for the next property together, or use it for vacations, etc. Whatever it is, the most important part is that you communicate it and share in the long goal together. 

Best of luck!  

I would try "house hacking" your business, you may want to start smaller first to get a "feel" for investing.

But there are some creative options to finance your business property, like the SBA loan, I believe its 10% down for 30 year financing, just as long as you occupy 51% of the building. But I would try for something larger with the goal of eliminating your building costs, possibly making money, and getting principle pay down. Among the other benefits of owning real estate. 

The best part is that your success will be directly linked to your creativity and actions. And if you're on BP, you're in the right place. Best of luck! 

@Jason Richards Welcome to BP! Glad to see a chiropractor on the forums, my chiropractor is a good friend and also followed the same path with real estate. My first question is, do you own your own building for your business? 

@Matthew Miller contact @Kit Crowne, he can give you a second look or help you with the 203k process! 

@Shirley R. it is an office building, Right Trac Financial Group. Kit works there and allows us to host our monthly meetings there. 

Please join us on Tuesday, April 9th, for a presentation on 1031 Exchanges. This tax-saving strategy is full of technical and legal challenges so having the right professional advisors is the key to ensuring a successful outcome. Our speakers include experts from Cantor-Fitzgerald out of NYC, CATIC’s 1031 Advisory Group based in Hartford, and Medallion Wealth Advisors from Avon. Come prepared to learn from the best of the best about this powerful tool for building wealth.

@Eric S.

There are some good responses here, but this situation depends on what your long term goals are. I would have 3 options here as an investor. What type of loan did you get, and how much did you put down? 

1. While living there I would've gotten a homeowner HELOC up to %100 of the value, being able to use the 100k or so of equity for other deals. Putting it in a deal, then refi out, repeat. (See BRRRR). I would have used Hard Money for the purchase and repair funds, using HELOC as down payment and carrying costs. But with you not living there now, it might be hard to get one. I would call a local bank to see your options.
2. You can sell your home, just make sure you are within 2 out of the last five years like you said.
   1. My biggest concern with selling is that you're giving 5% of your equity to agents, 1% for transfer taxes, closing cost fees, and any repairs you need to make for it to be market ready. So right there you 20-25k in costs to sell it. Plus the on market time (paying the mortgage).
3. Keeping it as a rental is a good option if you factor in holding it long term to gain the appreciation, which is often overlooked. Fairfield is a beast of a market, kind of separate from CT when it comes to outlook. Your cash flow isn't great once you start adding in maint, cap ex, turn costs, management, etc. You almost are at a break even. But you will get some decent principle pay down. 

So again, make the best decision you can for your goals. My question for you is, what higher and better use do you have for your money that you will pull out?